Introduction:

Managers and customers expect to get value for money. A significant number of projects have been cancelled or are seen as a failure because they ran too far over budget. This course will present the participants with straightforward approaches to developing a cost baseline and setting up a cost tracking system so that the budget is well managed during the project’s life cycle. The course will feature:

• The PMI global standard for managing projects
• Estimating cost techniques, including the Work Breakdown Structure, Work Packages and risk management considerations
• The S-curves for risk and cost estimates
• Control accounts and change control
• Earned Value Management, performance variances and management recovery options

Course Objectives:

By the end of this course, delegates will be able to:

• List the key attributes of cost necessary to understand and manage cost effectively
• Explain the key steps required to improve project estimates, budget and cost baselining, performance measurement and analysis, cost monitoring and control during project execution and interpreting and reporting project performance throughout a technical project life cycle
• Understand the benefits of good project cost control for successful project outcomes
• Use best practice to minimize costs and negative impacts
• Describe a typical project cost management life cycle
• Explain the action required at each phase of the project cost management life cycle and understand the significance of each phase
• Specify key quantitative measures for determining the project performance using Earned Value Management (EVM)
• Provide meaningful project progress reports using EVM together with forecasts of likely outcomes and management options to correct where necessary
• Apply this cost management process to a simple case study

Who Should Attend?

Construction Engineers, Senior Construction Engineers, Construction Supervisors, Construction General Supervisors, Construction Project Managers, Engineering Technologists, Supervision Engineer, Inspection Engineers, Civil Inspectors, Foremen, Design Structural Engineers, Planners, Structural Engineers, Material Specialists, Quality Control and Quality Assurance Experts, Architects, Supervision Engineers, Team Leaders, Site Officers and Managers, Mechanical Engineers, Technical Professionals, Field Production Supervisor, Operation Engineers, Clients Representatives, Team Leaders, Supervisors, Section Heads and Managers, Professionals who have an interest in a management position, anyone who wants to become a leader in their work role, Project, Purchasing, Finance & Production Officers and personnel, technical professionals including those in Maintenance, Engineering & Production, Secretaries, clerks, administrative and support staff

Course Outline:

An Overview of Project Management

• Basic project management definitions
• The PMI project management processes
• Project phases and life cycles
• Typical project terminology
• Setting up for success
• The project cost management processes, estimate costs, determine budget and control costs

Developing the Project Schedule, Estimating Cost

• Understanding project management inputs to estimating cost
• Creating the work breakdown structure (WBS)
• Work Packages as building blocks
• Estimation techniques
• Optimizing the schedule
• Estimating the overall project cost

Developing the Project Budget, Determining Budget

• Understanding project management inputs to determining budget
• Estimating personnel, materials and equipment costing including overheads Cost aggregation
• Considering the risk management process, risk response planning and risk reserves
• Estimating Risk Response costs, and Reserve or Contingency cost
• The S-Curve for risk and for cost

Utilizing Control Accounts and Effectively Controlling Project Costs

• Control Accounts and the Control Account Plan (CAP)
• Understanding what measures are required
• Change Control processes and re-baselining the cost performance baseline
• Understanding project management inputs to controlling costs
• Identifying and managing hours worked
• Tracking costs

Project Performance Measurement, Interpreting and Reporting EVM Results

• What is Earned Value Management (EVM)?
• What are the main measures used for EVM?
• Analyzing results, variances, performance indices and forecasting
• Interpreting results and considering options to redress unacceptable variances
• Forecasting and developing response plans
• Reporting EVM to senior management and customers

COURSE LOCATIONS